A skills-based organization is based on its talent acquisition, development, and placement on the specific skills and competencies that are necessary for a particular job or role, not based on academic achievements, work experience, or job title.

It is an organizational design and management approach that uses employee skills as the foundation of organizational operations.
In the VUCA era, for companies to achieve sustainable growth, it is crucial to focus on employee skills and operate flexibly and quickly.
"Skills" include comprehensive abilities such as problem-solving skills, communication skills, leadership, and adaptability, and are not limited to the specialized knowledge and technical abilities necessary for performing tasks.

Job-based employment is an organizational structure in a skills-based organization. A job-based organization is a human resources system that defines specific job roles and recruits and assigns personnel with the necessary skills.
A skills-based organization, in addition to the job-based approach of enhancing specialization, is characterized by the ability to flexibly form teams based on employees' skills.
It maintains organizational stability while responding quickly to change and maximizing the value of limited human resources.

The "Two Pizza Rule," which suggests that a team size should be small enough to be sufficiently fed by two pizzas, is based on the idea that smaller teams facilitate smoother communication, quicker decision-making, and higher productivity.

The issues in a skills-based organization include understanding skills, methods for evaluation and ensuring equity.
When using Artificial Intelligence (AI) to match employees and organizations based on skills, it is also necessary to pay attention to the accuracy of the AI's judgments and the handling of data.

The characteristics of a skills-based organization are the visualization of skills, flexibility in role assignments, and the implementation of continuous skill development.
By using skills as a common language, organizations can incorporate diverse talent from both inside and outside the company into projects, without being restricted by specific job roles or employment types.

This allows for the utilization of a diverse range of talent and skills, including gig workers who can be assigned on a project-by-project basis in addition to the full-time employees, thereby addressing talent shortages, promoting diversity, and enabling diverse working styles.
The benefits of a skills-based organization include improved adaptability to change, increased employee engagement, enhanced overall organizational capabilities, and the realization of diverse working styles.